The 19th century weapon would have been owned by a Royal Navy officer and was handed over to the Portsmouth Historic Dockyard this week.
Ken Jones is presented with the sword by Alan Ingram (063673-28)
The artefact will now go on show in an officer's cabin aboard HMS Warrior as part of their fixtures and equipment display.
The sword was handed in to Cheshire Police during the national knife amnesty earlier this year.
It was spotted by their press officer, Alan Ingram, in the property store at Crewe Police Station.
He said: ''It just seemed wrong that something which had seen service on the decks of Britain's sailing navy should end its days like that.'
Officers on board Warrior would have carried swords of that type, so it was an obvious destination.
Mr Ingram travelled to Portsmouth to hand it over and admitted he was pleased to see it taken off the streets and offering an insight into past navy life.
Commander Ken Jones, the captain of HMS Warrior, said: 'From an unusual source, this sword is an interesting addition to our collection of Victorian naval artefacts.
The sword is the 1827 pattern, which was made between 1827 and 1845.
michael.stoddard@thenews.co.uk